(a) Calculate the current value of Bond L. (See Table 6.2)
(b) What will happen to the value/price as the bond approaches maturity?
What will be an ideal response?
(a) Using Financial calculator: PMT= 90, N=5, I=6, FV=1000, CPT PV = $1,126.08
(b) The bond price will decrease and come closer to par.
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